Exporter of the week: Sugarcane-derived company exports chemicals and biotechnology to 30 countries

In this interview with Más Colombia, Sucroal’s general manager, Mauricio Velásquez, told us that one of the company’s main objectives is to position itself “as one of the largest exporters in Valle del Cauca and the country with our products derived from sugarcane and alcohol”.

Sucroal is the only non-GMO citric acid producer in Colombia. It also produces special citrates, vinegar and natural acetic acid, acetic acid esters and plasticizers derived from citric acid, as well as vinegar.

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Its portfolio consists of ingredients used in food production, such as starches, sweeteners, fibers and additives with applications in beverages, dairy, specialized nutrition, pharmaceuticals and processed foods.

Given the immensity of its production and its capacity to export chemical and biotechnology products, we spoke with Mauricio Velásquez, who told us about the history of the company, which has been in the market for more than 57 years, explained the production capacity of sugarcane derivatives and the scope of its chemical and biotechnology exports to countries in the Americas, Europe and Asia.

Below, we transcribe part of the interview, which you can watch in full in the video located at the top of the page.

What is Sucroal and what are its sales projections for the next 5 and 10 years?

It is a company that was born in the 60’s, we already have a little more than 57 years of existence.

This company is fundamentally dedicated to adding value to sugar cane, where we use sugar as raw material for the manufacture of some of our products derived from sugar cane and also the use of alcohol for some of our processes in our alcochemical plant.

In the complex where we are located in the municipality of Palmira, we have three plants for chemical and biotechnology exports.

One plant where we manufacture citric acid, another plant where we manufacture specialized salts, commonly known as citrates: sodium citrate, zinc citrate, potassium citrate, magnesium citrate…

And we have another alcochemical plant where we produce natural vinegar, we produce solvents, plasticizers and fertilizers.

Is this in liquid or powder form?

Well, there are two things here. The first thing is that we are importers of raw materials. We have some that arrive in liquid and also in dry cargo. Those raw materials that come to us, in liquid form, are products that we use for our processes in the alcochemical plant.

This is the case of propanol, glacial acetic acid, butanol, isobutanol and other products.

In terms of exports, when we transform some products derived from sugarcane and take them to international markets, in the case of citric acid or citrates, they are exported in 25 and 50 pounds, or one ton. These products are shipped in containers suitable for foodstuffs and ready for chemical and biotechnology exports.

When we export vinegar, solvents and plasticizers travel in liquid form.

In some cases we handle isotanks and drums, which also travel in containers by sea, because we do not handle airfreight for export. That is the way we operate for exports to other countries.

At present, the company has three plants producing sugarcane derivatives, such as citric acid, special citrates and alcochemicals, with a total production capacity of 100,017 tons per year. In addition, we have an environmental control plant with a capacity of 37,000 m3.

To which sectors are all these sugarcane-derived products directed?

We are in multiple sectors: processed foods, specialized nutrition, pharmaceuticals, beverages and dairy products, industrial chemicals and personal care, agribusiness and animal nutrition, as well as polymers, coatings and construction.

How have these exports been made and to which countries have they reached?

We are a company that has innovation and biotechnology as a common denominator in its DNA. Every year we bet on new processes and agreements with our strategic partners in various sectors, with a single purpose, which is to consolidate Sucroal as a leading organization in the world for its good practices and leadership in the sector.

To date we are present in 32 countries and we continue to grow. Our goal is to achieve a turnover of 1 trillion pesos by 2027, which we will undoubtedly reach together with our more than 560 collaborators and allies who help with chemical and biotechnology exports.

Currently, we process more than 42,252 tons of sugarcane derivatives per year and we have achieved, by 2022, an export of 42% to markets such as the United States, South America, Central America, Europe and Asia (Malaysia and Indonesia).

We have an export vocation.

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What strategies have you been implementing?

The first thing is that our most important export product is called citric acid, derived from sugar cane. We have other competitors that produce it from corn and others from cassava or cazabe.

A little more than 2.6 million metric tons of citric acid are produced in the world. At our Palmira plant, we produce 34 thousand tons.

One of the strategies we have been developing is to differentiate ourselves from our competitors in terms of the substrate we use. We have a very important element, which is that our product is manufactured with sugar that is not genetically modified.

On the other hand, we have quite high quality standards that allow us to really reach the food industries in the world, where we have been able to position ourselves as a premium product and that makes our citric acid very attractive to customers.

In addition, we work hand in hand with local and international industries. We are major suppliers to bottlers such as Coca-Cola and Pepsi-Cola, and to companies such as Nestlé and Procter & Gamble.

And to the extent that we have been able to conquer some markets because of our compliance, reliability and quality, we have been able to expand our presence in other markets with these same companies.

We have a very robust logistics operation in which logistics plays a very important role, because we deliver the product to the customer’s warehouse.

On the other hand, we have an innovation strategy where (as I am sure the audience has read) we are among the ten most innovative companies in Valle del Cauca, according to a study recently conducted by ANDI.

We are characterized by innovation, not only innovation from the production point of view, but also from the product point of view. We also sell specialized salts to many countries and we have a very important advantage: we are the only manufacturer in Colombia of natural vinegar produced from sugar cane.

Today the vinegar consumed in homes is made from sugarcane and is produced by Sucroal.

How is the environmental issue handled in the company and what is the social impact?

We have an entire sustainability strategy. Sucroal has made investments in production processes to reduce the generation of emissions, achieving a 30% reduction in 2021, compared to 2017.

But not only in sustainability, or climate change. We have actions that we are developing with neighboring communities, with whom we contribute in education, a very important issue for us.

That is an element in which we have been working on, actively, a large project that is in execution, in which we invested 3,000 million pesos with resources from works for taxes in the municipality of Valle del Cauca, in 30 educational institutions to provide them with the necessary elements so that students can have a quality education.

Likewise, we have other educational institutions in neighboring villages or hamlets, where we are also making some investments in equipment and in improving the infrastructure of the educational institutions.

In the chemical industries we have a great commitment and we are making progress in reducing our carbon footprint. The good news is that, taking 2017 as a base, we have created a reduction of more than 29%.

We care about the environment. We are continuously making investments to be able to improve the water that we use and that we subsequently take to the different tributaries so that it comes out with a level of purity and thus we can avoid contamination.

In other words, we are making important efforts in education, in environmental matters and also in our transformation processes in the production plants.

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Does this industry have permanent technological developments to deliver better products?

We are constantly investing in the plant. This year we are completing an investment of $37 billion pesos. These investments are aimed at automating processes and expanding production capacities.

We also have a major project called “energy efficiency”, which consists of producing the same or more with less energy.

At Sucroal we use two energies, electric and thermal energy. Therefore, with the increases we have had locally in terms of gas and energy costs, we have sought to save through these investments. That is why we are working on innovation, developing new products and improving existing ones to improve chemical and biotechnology exports.

What recognitions and certifications have you obtained for your business management and quality?

In terms of certifications, we have several: ISO 9001, which is the quality management system, and ISO 14001 for the environmental management system. We also have ISO 45001, which is the occupational health and safety management system.

We also follow good manufacturing practices and we recently won a very important medal called EcoVadis Silver, which is the platform dedicated to evaluating corporate sustainability.

This is an important achievement that demonstrates Sucroal’s commitment to the environment.

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